An example of a negative aggregate demand shock is ________.

Question

Quizplus · Accepted Answer

A global financial crisis would cause a decrease in consumer and business spending, which would lead to a decrease in aggregate demand. A global carbon cap-and-trade program could potentially lead to a decrease in aggregate supply, but not necessarily a negative aggregate demand shock. A decrease in the price of oil would lead to an increase in aggregate demand, not a negative shock. Thermonuclear war is an extreme scenario that would cause significant economic and social disruptions, but it is not a typical example of a negative aggregate demand shock.

An Example of a Negative Aggregate Demand Shock Is ________